Canadian Marketing Blog

Next generation tracking technology heats up online search.

This past week, I’ve been reading with interest the latest coverage in the share battle between Microsoft and Google in online search and advertising.

This time, it’s not the same press coverage about which company they’ve snapped up or what anti-trust suit is being filed. Rather, Microsoft, eager to challenge Google's internet advertising empire, has hired Brian McAndrews from aQuantive as its general manager, in charge of waging war against Google. And this time – it’s on.

Since announcing the deal to buy aQuantive and recruit McAndrews last month, Microsoft has been expressing its online advertising ambitions more loudly. “We are hell-bent and determined to allocate the talent, the resources, the money, the innovation, to absolutely become a powerhouse in the ad business,” said Steve Ballmer, Microsoft’s chief executive, at the company’s financial analyst meeting in July.

While Google has a big lead in online advertising, a field that is relatively new to Microsoft, McAndrews is seen as the right person to challenge the search giant. And it's in the area of search where McAndrews is planning to attack, by offering up Microsoft advertisers a system known as "conversion attribution."

Credit where it's due.
In a nutshell, the process of conversion attribution credits all the online ads and web pages a consumer has viewed along their personal buying path until they end up on a company’s website or online store. The system aims to give advertisers a fuller perspective on a customer journey and to give credit (I mean money) where it’s due.

With this new tracking power, McAndrews believes he will be able to seriously challenge Google by proving their advertisers are spending needless dollars on premium site locations, like top of page “Sponsored link” areas, to host web links – links that a customer was going to click on anyway.

Mr. McAndrews contends that search engines, which long have claimed credit for sending people to companies’ Web sites, do not deserve it all. “Google gets all the credit, and in fact, you might have just gone to Google to type in the U.R.L.,” Mr. McAndrews said, pointing out that people often search for companies’ names after seeing their ads elsewhere.

Using technology from aQuantive’s Atlas division, Microsoft will be able to provide advertisers with a log of all the places on the Internet where people see ads before going to the advertisers’ Web sites. The data is based on individual computers’ electronic signatures, not individual people.

More tracking means more computing power.
The new service will require massive server capacity and the ability to analyze billions of ad impressions every day. And Microsoft will be able to use the new tracking capacity to prove the value of its ad space, much of which is not directly related to search activities.

For the next generation of tracking technology, researchers are already figuring out how to measure the combined impact that online and offline media has on consumer awareness, interest and purchase.

After finishing this article, I got a chuckle....for when I typed in "aQuantive" in my Google search bar, guess who has both the top sponsored link and the first 'natural' result?

I think I've found a way to save aQuantive some online media money by following their own advice.

(Update: I came back to the site and the aQuantive sponsored link was gone! Guess they listened :-)

Brand naming - how GE did it

Brand Matters recently participated in a financial services branding conference in New York where business leaders shared recent branding initiatives.

The following is a success story of GE’s 40% increase in brand awareness of their sub-branded GE financial services division due to a well researched, systematic, and engaging name selection process.

The name selection process went as follows: name-harvesting sessions were conducted in 2006 and generated 200+ names. All of these options were evaluated against GE’s positioning statement. This process narrowed the field down to 21 names. Each of these was then tested using qualitative and quantitative research in over 10 countries with thousands of panellists. This stage resulted in four names which each then went through a trademark and legal review. Based upon all of the data recovered throughout the process, GE Money was crowned champion.

Some of the names being considered included; GE Money+, GE Go Ahead, GE 123, GE Spring, GE Simple Money, GE Ready Money, etc. The theme throughout these is ‘simplicity’, an important characteristic for a parent brand that:

 Spreads across 54 countries;
 Employs 307,000 people (2005 figure);
 Operates in many languages;
 Offers products and services in multiple industries; and
 Serves 130MM customers worldwide.

The theme of ‘simplicity’ is delivered throughout the GE Money organization and is the backbone of their vision – “surprisingly simple”. Most importantly, the name ‘GE Money' as well as its development process, aligns with this theme and GE’s organizational wide need for stakeholder engagement. This further entrenches these core values, and processes into GE’s internal brand culture and strengthens its existence throughout the entire organization.

Although we don’t all have an asset base in the $200B range like GE, this scaleable framework is worth keeping in mind the next time you are developing a new brand or find yourself in a re-branding initiative. A recent book, The Omnipowerful Brand, presents an alternate point of view on the process of brand naming.

Oh look – more labels and cards…

As I retrieved my mail today to find 8 separate premium mailings – all lovely collections of personalized labels and note cards, I asked myself, “how many pretty flower labels do I really need?” Then I remembered the key findings of a recent paper on this topic presented at the last Non-Profit Direct Marketing meeting in Washington DC.

The findings were that mailings with labels and cards are on the increase and so is the response to them. Judging from the contents of my mailbox, my colleagues have seen and/or experienced similar findings and are responding accordingly.

But have we prepared ourselves if the market shifts? What happens if the day arrives when their effectiveness (labels/cards,etc) begins to wane?

In the event that day is on the horizon, I thought I would share some recent successful alternatives to this popular creative approach. At the same conference mentioned earlier, many different charities from across different sectors presented countless examples of test against premium packages. In most cases, the label and card return on investment won hands down. But there have been a few notable exceptions.

One such example was an acquisition package sent on behalf of an international development agency in the US. They created a MAP package in 2006 (a WALL map insert illustrated descriptions of their work around the world) that beat an existing labels package (that had been the organization’s control prospect package for more than a decade). The MAP package has become the new control in 2007.

In Canada, a national health charity has managed to introduce a compelling envelope with ‘message based’ contents and no premium that has outperformed a label test package across all metrics including: gross revenue, average gift, return on investment and net revenue. To date, this control has managed to remain in place for 4 years.

Both of these examples represent an organization’s ability to create a mission-based appeal – one that introduces a donor to their specific cause and need. This is much different from the labels and cards which are for the most part, generic and not dissimilar between different groups. I was reminded of this recently during a visit with a major supporter (and frequent label responder) of many Canadian charities. I asked her how she decided which to respond to amongst all the packages she received each week. She told me her decision was simple – “whoever has the prettiest labels”. I couldn’t help but think relationship opportunities were being missed with this individual.

With the two non-premium test examples, the organization’s have not only been able to “sell their cause”. In addition, in both cases, packages were produced at a much lower package cost. The organization’s were able to both reduce cost per package and increase return on investment.

While it is clear, premiums are an essential mix of nonprofit marketing programs, hopefully these examples will encourage more charities to “think outside of the label and card box” and keep trying something new.

A "Bastard Fairies" tale.

It's a little early for best of 2007 lists to start to appearing, but as you craft yours in the coming months, I hope you'll consider this story for your top ten.

Some time ago, I stumbled across this video on YouTube:

(warning: bad language near the end)

Note the URL at the end. An ad! How perfect. What a way to promote a band!

At the time, a visit to thebastardfairies.com would display simple html website with this quote:

This album is free for all to download, and we just ask you one simple thing. Please make copies for all your friends and ask them to do the same, and so on and so forth. Your are our publicity, our promotion, our distribution and our friends. Please help us spread the word of the Bastard Fairies by sharing our music for free.

High-resolution album art was also included. Radical. The album was not out for months, but I could get it for free, right then.

I thought, I have to post about this! Later, when looking for the video on YouTube again, the following video was posted alongside it:

(Did you notice the Terminator wearing an iPod?)

Here's the kicker: Papa Bear should have left enough alone, because his stunt pushed the Fairies' rant video even higher on YouTube's charts.

The results speak for themselves:

1.6 million views
dozens of video responses
over 15000 comments
video favorited over 9000 times
coverage on major US network
extended media coverage in almost all channels
1 million tracks downloaded within 5 months of the post

creative budget: $0
production budget: $0
media budget: $0

I don't know how many CDs they've sold, but one thing is certain: the Bastard Fairies "get it". When using social media to market your product, realize that the marketing IS the product. In the music business, gone are the days of multi-million dollar deals. By "putting it out there", you'll get more people interested in you, and more likely, a greater audience base who'll come to your live shows and maybe buy a CD or t-shirt.

Oh yeah - and now that the CD is out, the Fairies are tossing in a t-shirt. That's $17 bucks for a CD and t-shirt, just for supporting them with a purchase.

CD and t-shirt for less than what would normally be charged for the t-shirt alone? I guess it is possible to make a living by cutting out some of the middle men... like the music business.

We have a lot to learn from these Bastards. ;-)

My pick for Social Media Strategy of the Year.

Nuit Blanche

September 29th was a very special night. If you logged on to Facebook that night, I bet you saw the same status over and over - so and so is...at Nuit Blanche.
http://scotiabanknuitblanche.com/

I joined the hundreds of thousands of people that evening. Although some of the installations were not quite my taste, I was most impressed by the record turn out. The city has never been so alive. There were people everywhere; all thanks to Nuit Blanche's sponsor, Scotiabank.

I have to admit. I'm a bit biased. I've been a Scotiabank customer for over six years. I've always been impressed by their life stage based marketing and services. The event on Saturday put them over the top. Imagine, a big bank giving back to the community without asking for anything! Sure, Scotiabank had information booths set up so you could learn about their products and services but the focal point of the evening was all about independent artists. It was an inspiration to see. I'm sure the event was a success in terms of brand awareness and likeability for Scotiabank. Kudos.

Facebook – leveraging a tested business model into the User Generated Space.

I have to admit - the first time I heard about Facebook was sadly, when the Virginia Tech School shooting occurred April 16th, 2007. Not being part of the 16-25 year old ‘millennial’ generation, I had never heard of it before.

But as I listened to news (on television), reporters continued to reference this ‘virtual meeting place’ as the primary means by which students located their friends and worried family, wrote messages and eye witness accounts on super walls (a feature that lets users create, draw and share messages with each other). Sadly, some walls became student memorials, with friends writing words of remembrance and condolence and commiserating about the senselessness of the act.

For me, this was Facebook’s debut as a mainstream online tool that captured my imagination - I got it and I wanted to try it out. Up to this point, I thought social networking sites were for exchanging personal dating profiles, hooking up, or a way to locate like-minded people passionate about, say, digital photography or baking with Splenda.

For those of your just joining us, Facebook is the number one social utility in Canada that connects people with friends and others who work, study and live around them. In less than a year, Facebook has become the most popular online social network – and Canada is now number 1 in the world for users.

According to the latest Ipsos-Reid survey, nearly two-thirds of 18-34 year olds have visited an online social network or community – and 55% of them set up a profile. Facebook has the largest share at 65%, followed by 20% on Classmates.com and 15% on MySpace. And we’re spending huge amounts of time there as well - an average of 5.9 hours a week. When you consider Canadians spend about 10 hours per week online, social networking activities accounts for a huge chunk of time.

Why Them? Why Now?
In a recent interview with TIME magazine, Facebook CEO Mark Zuckerberg, all of 23 years old (don’t you love it?), the new poster boy for the Millennial generation, attributes the explosive growth to the launch of Facebook Platform.

Borrowing a page from Microsoft’s Windows developer playbook, Facebook's platform enables anyone, anywhere, to build complete applications that you can choose to use. “The possibilities are endless,” he says... “For the first time we're allowing developers who don't work at Facebook to develop applications just as if they were. That's a big deal because it means that all developers have a new way of doing business if they choose to take advantage of it.”

And it’s not a coincidence Microsoft has an exclusive deal to sell advertising on the network and reach Facebook’s 30 million users. They get the power of this business model too. With the strategy in place, users will be introduced to a steady stream of services, features and content innovations.

I think it boils down to this key challenge – generate enough positive interest to keep the growth momentum going and continue to deliver quality content (sponsored and otherwise), useful online apps and services.

Otherwise, Facebook will become stale with users, who will no doubt move on to the next online widget that shines light in their eyes.

Facebook is fast becoming the new Internet jump off point for the millennial generation. And when this company gets its IPO together (assuming it keeps saying no thank you to suitors including Yahoo! (who offered $1 billion) and Viacom ($750 million), Mark Zuckerberg, 23, will be the newest member of the billion dollar club.

I wonder if he shaves yet?

Technology as the Great Enabler of CRM Analytics

With CRM becoming the paramount philosophy of marketing in the 21st century, organizations are striving to develop processes which are compliant with this philosophy. Specifically within the area of CRM analytics, one of the constants is the need for information. In looking at information within CRM analytics, one could use the analogy of the human body . The human body requires food for the effective functioning of all its processes which is similar to the need for information amongst CRM analytics practitioners. Yet, food by itself is not sufficient as exercise and eating the right foods are the real keys to successful health. It is no different with CRM analytics as the successful practices require not just information(food) but the ability to use this information in a meaningful manner(exercise).

The use of technology is the great enabler for CRM analytics by allowing organizations to more effectively derive meaningful information and knowledge from raw data. What does this mean? For the more advanced user, we now have more robust tools. Advanced statistical techniques can be more easily applied alongside tools that more effectively process the data.. A more advanced user can examine more complex techniques while examining them with much larger volumes of data. For these type of users, they can continue to look at their traditional ways of analyzing data which required a high level of technical expertise usually involving some type of programming as well as exploring other tools which may offer additional statistical techniques or increased data processing capabilities.

Yet, the real win for technology within the CRM analytics arena is the ability to empower more people beyond just the advanced users as discussed above. An empowered environment permits a much broader perspective of a given problem since more people are able to analyze the data. Certainly, this broader and indeed more collective perspective may produce better solutions. But what is the caveat? Yes, indeed more people can analyze data but how deep is the understanding of the information. At the heart of any analysis resides the source data. Most of these new empowering technologies deal with the source data in canned programming modules where the analyst does not need to have a solid understanding of the data environment and all its nuances. More importantly, the analyst does not need to have an understanding of how to manipulate the data into a form where it can be analyzed. This limitation represents a loss of potential knowledge and information because in many cases it is this detailed knowledge of the data environment that can truly lead to a superior data solution. As in many business scenarios, the devil is in the details.

These new user empowerment technologies are certainly here to stay. But organizations also need to understand that the role of advanced analytics and the need for more technical human resources is equally important. In fact, in being able to juggle these two priorities of user empowerment and advanced analytics, one must be able to evaluate projects by the degree of data intensity that is required. For example, certain exercises and projects such as simple cross-tab reports require a less data intensive discipline while projects such as predictive models require a much more rigorous discipline with the data. Both cases involve analytics and both are equally important to the organization , yet it is the successful organization that can both increase user empowerment while providing a more focused approach towards its advanced analytics. The key to this success, though, is effective use of technology.

Brand Slogans - Strategy, Vision and Haiku

Brand Slogans – strategy, vision, story telling and poetry. Haiku in 15 words or less.
When people speak of brand slogans and jingles it seems to conjure up the innocent days when bread cost 5 cents, milk was delivered to your door. A bygone era - cute and catchy - but quaint and naive.

But for all the good the new personalized communication tools are for marketers, a well crafted brand slogan can be exceptionally powerful. When they work, they capture the essence of the brand, its desired uniqueness/positioning in the market and even hint at the brand promise being made.

A brand slogan is not a tag line. A tag line is what you get if you fail. Taglines are one of the first things to change as soon as a new marketing or agency team or on the assignment. A slogan on the other hand is more enduring. It becomes the clarion call for the brand. The great ones take on a life of their own often receiving extended coverage from the media, popular culture and talk around the water cooler.

To have a great brand slogan you have to capture the voice, personality and soul of the brand promise that will embed itself deep inside the mind. Think of strategy, vision, story telling and poetry all coalescing in space and time to remind us of something important.

The following are a few of my favorite brand slogans:
New York Times - All the news that's fit to print.
Amtrak - See America at see level.
Avis Rental Car - We're number two. We try harder.
General Electric - We bring good things to life.
M&Ms Candy - The milk chocolate melts in your mouth - not in your hand.
NYSE - The world puts its stock in us.
UPS - Moving at the speed of business.
John Deere - Nothing runs like a Deere.
Kodak - Share moments. Share life.
L’Oréal - Because I’m worth it.
Michelin - Because so much is riding on your tires.
NyQuil - The-nighttime-sniffling-sneezing-coughing-aching-stuffy-head-fever-so-you-can-rest-medicine.
Smith Barney - We make the money the old-fashioned way—WE EARN IT.
Oscar Meyer - I wish I were an Oscar Mayer Wiener.
Oscar Mayer - My bologna has a first name, it’s O-S-C-A-R.
MasterCard - There are some things that money can’t buy. For everything else there's MasterCard.
Canadian Blood Services - Blood. It’s in you to give.
Dofasco - Our product is steel. Our strength is people.

A wealth of others can be found at the sites listed below.
http://www.scribd.com/doc/11748/Historyofbranding-com-Famous-Brand-Slogans
http://www.adslogans.co.uk/hof/2top10.html
http://en.wikipedia.org/wiki/Brand_slogans
http://adage.com/century/index.html
http://historyofbranding.com
http://www.taglineguru.com/sloganlist.html

Integrated Marketing Communications – Taking the 360 degree approach.

I had lunch with our agency account director this past Friday. It had been a while, so we had a lot to catch up on - a mutual friend’s promotion, what we did over summer holidays and celebrating the completion of a marcom project.

But there was one topic we spent a lot of time on, starting with our entrees right through to cappuccinos and waiting for the bill – the growing importance of integrated marketing communications, (IMC) and the challenges for the modern day marketing officer and advertising agency.

According to a recent report published by the American Association of Advertising Agencies, developing integrated marketing communications is the number one concern of senior marketing executives (followed by accountability, aligning their marketing organization with innovation and building strong brands). Of those surveyed, 91% believe that an integrated campaign is of critical importance to their success; however only 21% believe that their organization actually does a great job delivering it.

Taking a 360° view.
The answer for a growing number of marketers is to take a 360° approach, zeroing in on a target group likely to be receptive to a message – and surrounding it from every angle, using a variety of media to touch customers at different points along the decision-to-buy pathway.

Although it began as a media planning tool, 360° has since expanded to embrace the entire process of communicating with customers and prospects. In our new media world – having moved from manufacturer-controlled to consumer-managed, companies have been forced to rethink how to reach people. “If you are talking about reaching the consumer, you are missing the point,” says Wenda Harris Millard, chief sales officer at Yahoo! Inc. “You can reach anybody. The challenge now, because of media multitasking, is connecting with consumers.”

So using new media tools to deliver a 360° approach means understanding each one's relative strengths and ability to influence the consumer:

1. Talk to your media planners and understand the strengths and weaknesses of each - which ones work best at generating message reach? Conversion? Consideration? Purchase? Which offer efficient regional or local audience coverage?

2. New media options are creating new ways to measure engagement - and need to be included in the campaign metrics pages of your plan. For instance, what is the value to your brand of watching a video on You-Tube, writing on someone's wall on Face book, or collecting an email address?

3. Work closely with your research owls and see what the correlation of media usage is on conversion and purchase. What new media options are more efficient at delivering buyers than others? What's the cost per lead per vehicle?

4. And, since many of us see the poetry in program ROI calculations, it’s about getting the media investment to align cost-efficiently with the above insights.

To impress the marketing director with your dazzling command of the new media world, work with an agency that takes an agnostic approach to recommending different media. One clue - look for new agency roles including chief activation officer, or media integration planner as cues they understanding the new ways to connect with consumers.

I remember back in the day when I started my career in advertising. For those of us who didn’t go to OCA for a fine arts degree, a common way to get a foot in the door was through the media group. Spend a few years as a media estimator, then a media planner or buyer. Since the better paying jobs were in account services, in short order you were focussed on a role as an AE or Supervisor.

However today, with the amazing innovations in media, technology and the rapid pace of change, it seems to me some of the most important, coolest jobs found in any agency today are in the media group.

Now how 360° is that?

Caring About the Environment…How Chic!

I had the honour of attending the First Annual Fashion Auction Eco-Couture Gala & Benefit the other week.

Billed as Toronto’s Greenest Fashion event, guests were invited to get “green” with envy by strutting the grass carpet. Potential ticket purchasers were invited to see haute–couture pieces made from soy, hemp, bamboo and organic cotton.

And the marketing didn’t disappoint… Everything from the lighting, organic food & drink, right down to the Green Limousine was eco-friendly to ensure the lightest of eco foot prints were made.

Even better, this was a fundraiser with the proceeds going to support one of Canada’s leading environmental organizations: Environmental Defence (www.environmentaldefence.ca). This group is responsible for many eco wins since their formation in 1984 including – greater protection of our greenbelt, creation of the Oak Ridges Moraine as well as the protection of several endangered species in Canada.

The organizers thought of many creative ways for attendees to part with their money. As guests entered the event, they were encouraged to purchase a “swatch” of eco material used for the clothes to tie on a tree. There was also a fantastic silent auction featuring eco friendly products, a ‘green’ scooter for raffle and the piece de resistance?...five beautiful outfits available for live auction following the runway portion of the show.

In the fundraising world, it seems everyone is asking the same question. “How do we get more young people engaged and giving to our causes?” As I looked around the room, this group of young hipsters represented the very same group everyone is yearning for.

KUDOS to the organizers!

The Age Of Recommendation

It should not be any surprise that as consumers we believe each other. We are all in the game of consumerism together and trust opinions from people we believe to be just like ourselves. When you think about it, recommendations are likely what commerce was built right from the very start, so this is really nothing new.

However, what has happened on our watch is that the digital space has given rise of the voice of the individual and the ability for everyone to provide "word-of-mouse" testimonials. We have seen a rapid acceleration in terms of the abundance and availability of this kind of material more so than at any other time in history.

As Chris Anderson cites in his book The Long Tail - The New Economics of Culture and Commerce, "the trend watchers at Frog Design, a consultancy, see this as nothing less than an epochal shift":

We are leaving the Information Age and entering the Recommendation age. Today information is ridiculously easy to get; you practically trip over it on the street. Information gathering is no longer the issue - making smart decisions based on the information is now the trick... Recommendations serve as shortcuts through the thicket of information, just as my wine shop owner shortcuts me to obscure French wines to enjoy with pasta."

It makes perfect sense. And, so does the chart below showing that when it comes to CPG consumer product reviews posted on the Internet "virtually all shoppers now find them credible". They are an extremely influential part of the purchase decision - either positively or negatively.

Our opinions, tastes and degrees of satisfaction/dissatisfaction with anything and everything have now become navigation points that rise above any tag line or benefit statement we can muster up. The question marketers need to ask is how they are enabling the recommendation-factor for their brands and generating a collection of positive consumer generated content.

I believe there is no big secret on how to achieve this. It is as simple as creating something, be it a product or experience, that people will want to talk about, recommend and share with others. It all seems to fall into place from there.

Are mobile phones getting (too) personal...?

This month, the Kelsey Group released its “Mobile Marketing View” tracking study of mobile user behaviour, including asking what customers want to do most. Number one on the list – better Internet capabilities. Almost half of those asked, 44.7%, say a mobile phone with better Internet functionality and a cheaper internet plan are tops. According to the survey, only 26 percent of mobile phone service subscribers currently opt for an Internet access plan.

“The combination of unlimited data plans and next-generation Internet-enabled mobile devices, like Apple’s iPhone, suggests mobile Web access will grow to become ubiquitous,” said Matt Booth, a senior vice president at The Kelsey Group. And what do customers want to do with those unlimited connection times? Search for local businesses along with a custom map and turn by turn directions. Travel across the Pacific ocean to Japan, however, and you'll find they're way beyond having a cell phone point out landmarks or the nearest takeout restaurant.

Introducing the Wellness Navigator – a touch screen slider phone manufactured by Mitsubishi. It was shown off earlier this month at CEATEC 2007 in Tokyo. Among other personalized coaching features like counting calories and offering up motivational messages, the phone has a built-in bad breath meter that lets you know if you have the halitosis. You simply cup the receiver with your hand and huff – and your personal stink sensor goes into action –alerting you to pop a mint or that it’s ok to have another piece of garlic bread. The phone has a built in pulse meter and body fat analyzer which sends a weak electrical signal through your body to assess your paunch.

My New Best Friend..?
The mobile phone continues to evolve as a personal device. For many, it’s within reach at every waking moment, customized with photos and ring tones (one for each friend!) as it securely transmits our most intimate conversations into another person’s eardrum. Therefore, it's inevitable for some that mobile technology take on more human traits.

But many of these offerings with a ‘softer side’ have been slow to find a North American market. Why? Some observers believe that it’s because we draw the line on what we allow technology to do for us. Buying movie tickets with our mobile is one thing – being told to lay off the double cheese pizza is another.

Look out Facebook here comes the next Ning

Recently my colleagues have been all a buzz around creating their own social networking sites. Why? Because they want more flexibility and the ability to brand their very own network. Or so they tell me. An example that allows you to brand your own network is Ning. Which is an online platform that allows you to quickly create your own community in just a few minutes. Ning provides a full list of social networking features. The experience is very similar to setting up a Blog on Blogger.

The site was co-created by Marc Andreeson (Netscape browser fame) who helped kick start the venture. Currently Ning features over 5,000 social networks ranging from a handful of people to thousands. There are communities built around everything from Dancing with the Stars to car lovers to active communities around reviewing of products and services. Ning is not the only ‘do it yourself’ social networking platform. CrowdVine is another online service. A quick Google search and you will find a number of options.

If you have been considering building or testing online communities with your customers these platforms (most of which are free) might be a great way to get started. Lately I have seen a number of not-for-profits using these platforms as an extension to their existing website. A word of caution and this goes without saying, when selecting a platform make sure the company behind venture has a track record and is financially stable. Nothing worse than building a great community and the platform it’s hosted on disappears!

Will Boomers Work Until They Die?

According to the Globe and Mail on October 18, gone are the days of ageing Canadians retiring to a life of leisure. A survey of 304 baby boomers by polling firm Ipsos Reid for Bank of Montreal indicated that 15 per cent of this demographic who either retired early to start their own business or who plan to do so said they expect to work for themselves 'until they die'. One in five, or 21 per cent, of the boomers polled said they expect to run their own business for more than a decade while just 16 per cent said they will work less than five years.

In his latest book Microtrends: The Small Forces Behind Tomorrow's Big Changes, Mark J. Penn, President of U.S. polling firm Penn, Schoen & Berland, pointed out that to the baby boomer generation in the U.S. who is nearing 65, the traditional idea of 'retirement' - with its gold watch, rocking chair and golf course - is just about ready for retirement itself. According to Mr. Penn, boomers reinvented youth in the 1960s and economic success in the 1980s; they are not about to do their senior years by someone else's formula. According to a 2005 survey by Merrill Lynch, more than three in four boomers say they have no intention to of seeking a traditional retirement. Rather, they look ahead to their 20 more years and they say Bring It On.

Having said that, boomers would want more flexibility in the work force so that they can take time off to pursue outside interests or home reponsibilities and still contribute to society. Many may not have saved enough to live comfortably in their old age, so some paid work is better than none. If companies can give boomers the chance to realize their life-long dreams, they will come back to the workforce and it's a win-win for both the employee and the employer.

The longer companies can keep boomers active in the work force, the better off everyone will be!

Get Facebook to Facebook with your Customers

There have been a number of great articles about Web 2.0 on the Canadian Marketing Blog. There is no denying the fact that Facebook has taken Canadians by storm when it comes to social networking. We are among the world leaders in Facebook usage.

Wherever people gather (physically or virtually) there are opportunities to listen to your Customers and deliver some value added services.

Wal-Mart and Target have been in the news recently with their foray into Facebook marketing. David Wilson wrote a great summary of his take on the Facebook strategy of the two organizations (and who is winning so far).

I was discussing the Facebook opportunities with someone from another organization and was surprised to hear they had not done anything in that area.

Our own strategy thus far on Facebook is to be personally available to our Customers in the Facebook sites they have created. We have been able to provide some "insider" information that they love, and provided some Customer support wherever needed. The sites have grown and people are constantly discussing anything and everything to do with our organization. We are trying to build trust because we genuinely want to build trust. There are no ulterior motives. We are by no means experts in this area. We are learning by being involved.

If you haven't joined Facebook, you may be surprised what is being said about your organization. These are genuine Customers giving genuine feedback about your products and services. Making yourself available to them in an honest way can only help build the relationship between you and your Customers. How much more loyal would these Customers be if they were the first to hear about a new product or service coming from your organization?

The person I spoke to the other day was surprised when I told him there was a group created that loved the service his organization provided. He was floored when I told him there were already more than 3000 members in the group and growing strong.

Live from the *Sold Out* Digital Marketing Conference

We're off and blogging - Wi-Fi enabled and having a great time at the 10th annual DMC! It's a sold out, caffeinated group of marketing professionals here to meet their peers, share experiences and learn

First up - Chuck Porter, Chairman of Crispin Porter + Bogusky. Chuck gave a great presentation focused on the need to both understand the basics of an emotional connection with customers regardless of the media. The right offer, at the right time made to the right people still rules.

Key events to watch: the 2008 U.S. presidential election, as we see economics drive innovative use of online marketing by some of the savviest marketers in the world – U.S. politicians.

On the best thing about digital marketing: Viral. It’s the one thing; the one element that Chuck believes truly differentiates digital marketing. Several great examples from his shop:

For Burger King: Take your picture and “Simpsonize” it…
For Coke Zero: Real life lawyers at their very best…
For VW: Crashing cars…

Stay tuned for more updates from the digital event of the year!

The Hunt for Interactive Talent: Call to Action

We need to act. And, we need to act now.

Earlier this week, I was participating at one of the Market Yourself Smarter conferences. Those who attend MYS events appreciate them because they are consistently topical and practical.

The topic of the day was Employers Who Walk the Talk. A few messages came through loud and clear during the presentations and group discussions:

• To succeed, companies must tap into the passion and creativity of their employees
• This generation’s workforce has new expectations from its employers
• Leadership means effectively understanding, anticipating and responding to employees’ needs and expectations

As I was listening to discussions about the employees’ ideal work environment it struck me that if there ever was a group of stakeholders that relied on leading-edge skills from the current and next generation of talented workers, the interactive and digital marketing community is it.

Other CEO’s and Presidents at interactive agencies, web developers and e-marketing shops often ask me how we (at ThinData) are able to consistently attract and retain top talent. They all say the same things: the hunt for talent is consuming much of their time; the talent pool is thin; and, they are spending growing amounts of money on recruiting talent.

And yet, I am not hearing a great deal from the interactive and digital community – the independent firms or the digital arms of the big ad agencies – about this fundamental resource challenge that needs to be addressed with a long-term vision.

There needs to be a plan; one that is developed, monitored and updated.

The interactive and digital marketing community needs a plan that engages universities, colleges, associations and businesses. All of these stakeholders need to work together to identify the skills that are needed now and in the future as well as to methodically and substantially grow the pool of talent.

We need to sit down as a group and identify innovative ways to cultivate the required skills while fulfilling the expectations and demands of a new generation of employees who expect new types of working relationships.

If we, as a community expect to keep pace of growth as we look to 2009, 2010 and beyond…we need to start treating the development and growth of talent as an industry priority. We need to take lessons from other industries that have successfully developed formal apprenticeship and training partnerships with educational institutions across different levels.

If, as a member of the interactive and digital marketing community, you have ever found yourself struggling to find or keep the right person, you have a stake in this issue.

Let’s discuss it in more detail. Shoot me an email at ceo@thindata.com.

It’s Not Rocket Science

Well, if it was, Dr. Anita Sands, VP, Head of Innovation & Process Design, Global Technology and Operations, RBC, would crack the code. With a Ph.D in Physics, (and having worked with new Torontonian Richard Florida) Anita leads innovation within one of the most risk adverse, heavily regulated segments in the marketplace – banking. Here are some great tips from her morning keynote presentation at the DMC:

* Double-down when times are tough: if you pull back on innovation when business is tight, once the cycle pulls up you’ll have nothing new to take to the marketplace and risk falling behind the cure and losing momentum

* Innovation is Art & Science of what is possible and what is valuable to clients/customers

* Innovation is not necessarily invention – it is not R&D, rather applied innovation. Anita process moves from Ideation through to execution & measuring the impacts on the business along they way

* Big used to beat small, now more then ever fast beats slow - small innovations can yield tremendous results over time

* You don't need to change an industry to demonstrate game changing - think about turning the ketchup bottle upside down...

When the Promise of a Customer Reward fails to Connect.

Before you read my story, here's the lesson in it - sometimes it's better to do nothing – to not make a decision to buy something new or trade in the old. Sometimes doing nothing is a reward in itself.

Such was the case this past week, when I was thinking of upgrading my cell phone to one of the “mobile” varieties. You see I’ve owned the same one for 5 years and it basically does one thing very well – make phone calls. But getting a mobile, on the other hand – opens me up to a new world of digital possibilities.

“I’m ready for this,” I convinced myself – a mobile lets me do everything – download music, take photos, text friends, check my LinkedIn and Facebook accounts, watch podcasts – even be at the ready to shoot video just in case... of escaping circus elephants rampaging down Yonge Street. I imagined taking that esteemed position on YouTube – owner of the most downloaded video in history. I can’t wait any longer, I thought – where do I go to sign up...?!

The timing was perfect too. I just received a friendly letter from my carrier telling me I had been a “valued” customer for more than 5 years – 3 of these without a contract to bind us together. It seemed because I had chosen to be with them, they recognized this and were about to reward my loyalty big time.

The letter went on -“we would like to thank you for your business.... so we’ll give you a credit worth up to $250 as a bonus renewal offer towards the purchase of a new phone or PDA when you renew your service agreement...“thank you for choosing us.”

Sweet, I thought - I can get a really cool mobile for next to nothing and gladly surrender to a three year term until the next generation of mobiles comes along.

Well, here’s what happened.

I went into one of my carrier’s retail stores, letter in hand, and was met by a pleasant sales person named Wanda. I told Wanda I was ready to make my move to mobile, and even had a $250 bonus credit as a renewal offer to work with. I explained I’d been a loyal customer for five years and just got this special letter saying as much. “Wanda, I said - only show me the best and latest of everything you’ve got. I’m ready!”

“Well actually,” Wanda said, “the price you see beside each model is the price you pay – we’ve already factored in the discount – the $250 credit in this letter anyone can get.” Oh I see. So I asked Wanda to check my account. Surely there’s a notation saying how loyal a customer I have been and to give this golden apple whatever he asks for....

She looked up my details and paused...hmmm, she said, slightly puzzled, “it says here DO NOT RENEW.” “What? I asked, what does that mean?”

“Well, she explained, you have a really good mobile rate we don’t offer anymore, so when we get you in here and sell you a new mobile phone, we put you into a “current (read: more expensive) rate plan.”

My hopes of going mobile were quickly fading like a weak transmission signal....

With either of us not ready to give up, Wanda took me through the latest models, asking lots of good questions in order to point me towards a model and monthly plan that we thought would suit my needs.

I thought to myself, well I’m already here, Wanda is helpful, I love this mobile model she showed me, and it’s not that much more a month – I’ll just suck it up and get it.

We made our way back to the register when she dropped another one. “I wanted to mention that you’ll also have to pay a $35 ‘upgrade fee’ because you’re getting a new model.”

Call me crazy, Wanda, but can we summarize here?

1. The $250 bonus renewal offer I received is available to anyone – not just us “valuable clients?”
2. I still have to pay the net cost of the phone ($49.99 for the model I wanted)?
3. If I do get a new mobile, I have to go into a more expensive monthly rate plan?
4. I have to pay an upgrade fee on top of the $49.99 for the phone?
5. I'm a valued client - a loyal customer?

How sad - I did understand all this correctly. Oh sure, I could call an 800 number, wait on hold for 20 minutes and then complain to the customer rep on the other side of the world that I feel totally taken advantage of. But why bother? If they don’t get it... why bother??

I have two points of view here on how I’m feeling after this experience.

As a Marketer
I see the revenue and profitability potential with this program. It probably went something like this: Generate a list of active GTA subscribers with expired contracts. Send them a letter with a $250 phone credit as incentive to drive them in store. Then upgrade their model and monthly plan.

I’m sure the ROI on this program is through the roof – the DM piece was less than $1 and the lifetime value of my business is in the thousands of dollars.

What is the effect on long term customer satisfaction with these types of programs? Did anyone really scrutinize the offer copy and come to the conclusion that it was in fact no offer at all? What's the cost of losing a high value customer (me) to their bottom line?

As a Customer
I feel like I was tricked into coming into the store – duped by a letter implying I was entitled to a reward for my loyalty that didn’t even exist. I feel cynical about what it means to be called a "valued customer" and what a "bonus renewal" offer really means.

That day, my goodwill towards this company dried up quicker than fresh rain on a desert floor. So I did absolutely nothing – I walked out of the store with my old model, trusted and reliable cellular phone, knowing that every month I get a bill for services that I’m paying less than the company wants me to.

I guess I do get a little reward after all.